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Insurance Business | 26 Mar 2014, 10:02 AM Agree 0
The ACCC has okayed IAG’s acquisition of Wesfarmers’ underwriting business as it does not “materially change competitive dynamics”.
  • Jak | 26 Mar 2014, 10:29 AM Agree 0
    ..and the elephant with bleeding hemorrhoids running through a snow field, escaped the ACCC's detection systems, again...
  • Ray Crark | 26 Mar 2014, 10:45 AM Agree 0
    One less option in the market, just what we need.
  • Just An Observer | 26 Mar 2014, 11:40 AM Agree 0
    Was it ever really in doubt?

    The real important questions are:
    1. how long will it be before CGU bring the Westfarmers ARs in rural Australia into line? Hopefully they will do it quicker and better than QBE has done with the Elders AR's !
    2. How will CGU justify to their supporting brokers the premium difference between Coles and CGU for Private motor?
    3. Will all of the Westfarmers AR's be forced to join NAS? (effectively the CGU AR arm?)
  • Rolf Van Dulst | 26 Mar 2014, 12:35 PM Agree 0
    Following the GFC there is a strong argument for a financial system dominated by a few, large, profitable, well regulated players be they Banks, Insurers or Investment Funds. The difficulty is that this inevitably lessens competition and innovation and can lead to monopolistic behaviour by these few players.
    So the question becomes how many is enough? I would say 2 (like Coles & Woollies) is too few. Is there enough competition between the big 4 banks? Can a market the size of Australia (1% global insurance premium) sustain more than 5 major insurers? I tend to think we don't want to be seeing too much more consolidation in the top end of our insurance market.
  • Robert Cooper | 26 Mar 2014, 01:24 PM Agree 0
    My main hope is that the Lumley name is not lost in Australia. I and many others started our careers at Lumleys and we owe them a great deal for their contribution to the Australian Insurance Industry. I hope IAG will use that valuable brand name into the future.
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